Flags such as isOpened, toBeShown, wasXChanged, isXValid, isDataProperToFetch and whatever you name it plays a major role in development process and there are times where I hit a point to nest these flags 3 to 4 component throughout the tree sad truth is all connected components re-renders.

Resolving nested props requires either of

• flux based architecture such as redux, mobx
• sharing the react state with context
• Using composition to avoid props drilling

one linear: you are affecting the whole store

IMHO, one can put anything in store but take a step back and question how many places you need to refactors before shipping a single state to store especially in hooks. To name a few

• look for dependency
• create reducer(s)
• updating mapStateToProps
• updating corresponding parts of the component
• rewriting hooks to call a function in mapDispatchToProps

Works fine expect it re-render consumers for unnecessary state updates

const AppContext = createContext();
Parent = () => {
  const [flags, setFlags] = useState({a: 1, b: 2});
  const [timeOfMount, setToM] = useState();
  useEffect(() => setToM(new Date()), [])
  return (
    <>
      // renders values are only for single `setFlags` and does not include mounting phase
      <p>{timeOfMount}</p> // renders onces
      <AppContext.Provider value=flags>
        <Child> // renders twice and also for `setToM`
      </AppContext.Provider>
    </>
  )
}

Besides it re-renders for unnecessary state; update a single change(such as key a) in context value triggers re-renders in all the child component which also a wasted render

Yea it works again refactoring matters and the same problem with context follows

Create a observer whenever you want to share your state and listen to the changes in the consumer. Do npm i shared-state-react

import { useToCreateSharedProps, useToConsumeSharedProps } from 'shared-state-react';
const Parent = () => {
    const [counter1, setCounter1] = useState(1);
    const [counter2, setCounter2] = useState(1);

      useToCreateSharedProps('Parent', {
        counter1, counter2,
      });
      return (
        <>
          <MemoCounter id=1 /> // you can go with dynamic ids as well
          <MemoCounter id=2 />
        </>
      )
}

const Counter = ({ id }) => {
  let counter = useToConsumeSharedProps('Parent', `counter${id}`);
  return(<p>Counter1: {counter1}<p/>)
}
const MemoCounter = React.memo(Counter); // since counter is not a part of props we don't need this component to re-render

npm i shared-state-react

useToCreateSharedProps create a object with an ability to track changed values and update the corresponding observer which are added with useToConsumeSharedProps. This library uses === to check if something has changed. So read bonus tip for custom part of useToConsumeSharedProps

For eg: useToCreateSharedProps('key', {counter1, counter2}); create a sharedStateManager object. useToConsumeSharedProps('key', 'counter1'); create a listener for counter1. First Parameter key lets you to use same object names counter1 for different parts of the react tree (basically to avoid conflicts of using same flag name such as isOpened and all those). But since you are sharing the your state you have to be descriptive with what was isOpened referring to, or you could go wild with useToCreateSharedProps('TopHeaderDropBox', {isOpened}); which ever approach works fine for you.

Third arg of useToConsumeSharedProps accepts a callback. If it returns true the consumer will be updated.

const user = {
  id1: {
    name: 'harry potter',
    canCastSpellOutsideSchool: false
  }
  id2: {
    name: 'George Weasley',
    canCastSpellOutsideSchool: true
  }
}
useToCreateSharedProps('Magicians', {users}); // in the sharing part
const updateOnlyIfUserAdds = (oldVal, newVal) => Object.keys(oldVal).length !== Object.keys(newVal).length
const userList = useToConsumeSharedProps('Magicians', 'users', updateOnlyIfUserAdds)